Now, Use UPI To Make Deposits In NPS Tier-I, Tier-II Accounts Under D Remit

On the occasion of the 75th anniversary of India’s Independence, the Pension Fund Regulatory Development Authority (PFRDA) has launched a UPI handle to enable subscribers to make contributions to their tier-I and tier-II National Pension System (NPS) accounts through the D Remit mode. This is being done as part of the ‘Azaadi ka Amrit Mahotsav’ campaign, the PFRDA announced in a press release.

At present, subscribers can deposit their voluntary contributions under D Remit into their tier-I and tier-II accounts through Netbanking from their respective bank accounts by way of IMPS, NEFT, or RTGS. But now, such contributions can also be made through the UPI handle: PFRDA.15digitVirtualAccount@axisbank.  

It is important to note though that the D Remit Virtual Account is different from the associated Permanent Retirement Account Number (PRAN). The D Remit Virtual Account number is also different for tier-I and tier-II accounts.

HOW TO CREATE A VIRTUAL ACCOUNT AND MAKE REMITTANCE THROUGH UPI

Here are the steps by which you can create a virtual account number and make remittance through the UPI handle.

• The subscriber has to first visit the eNPS website on the central recordkeeping agency (CRA) system.

• Then, he/she has to provide the details to verify PRAN. Then, submit the OTP received on the mobile and/or email.

• Thereafter, select the account – tier-I or tier-II for which the virtual account is to be created. Then, click on the ‘CONSENT’ tab. 

• Next, click on the ‘Generate Virtual Account’ tab. Your request will be forwarded to the trustee bank, and an acknowledgment number for the same will be generated. Do note that separate number will be generated for each tier type.

• Then, enter the 15-digit Virtual Account No. in the format: PFRDA.15digitVirtualAccount@axisbank, in the UPI handle for remitting the funds to PRAN.

The PFRDA has further announced that under D Remit, contributions received by the trustee bank before 9:30 am shall be considered for investment on the same day. Contributions received after 9:30 AM shall be considered for investment on the next investment day according to guidelines.

So, the same day net asset value (NAV) will be applicable if the contributions are received on the transaction day before 9:30 am, if it is a working day. Contributions received after the cut-off time will have the next day’s NAV.

BENEFITS OF D REMIT 

The PFRDA has listed the following benefits of D Remit

• Same day Investment, and thus benefit of same day NAV 
• Facility for setting up periodical auto debit through monthly, quarterly, or half yearly mode 
• Option for one-time or regular contribution
• Ease of modifying the amount and/or periodicity of auto debit 
• Enabling or pausing auto debit according to convenience 
• Optimising the investment benefit though ‘standing instructions’
• Benefits of rupee cost averaging, and
• Long-term retirement and wealth creation benefits

OTHER DETAILS

The PFRDA further mentioned that since the minimum value of contribution under D Remit will be equal to or above Rs. 500, thus, UPI-based contributions below Rs 500 shall be returned by the trustee bank. This return into the source bank account of the subscriber will be in accordance with the NPCI norms, PFRDA said.

Contributions received for PRANs which are frozen/inactive will be returned by the trustee bank after receipt of confirmation from the respective CRA. Contributions transferred by entering any wrong virtual account number by the subscribers shall be returned in accordance with banking norms issued by the Reserve Bank of India, the statement further said.